Cooper called and called - HIH paid

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A key witness at the trial of former HIH Insurance associate
Brad Cooper yesterday told the NSW Supreme Court of a series of
payments made to Cooper in late 2000 and early 2001, after he
persistently called and faxed HIH for payment.

Bill Howard, who in 2000 was HIH's chief investments officer,
was told by the then chief executive officer, Randolph Wein, to
settle a number of Cooper's outstanding claims by paying him 50-60
per cent of what he asked.

Most of the transactions arose from Cooper's business deals with
FAI Insurance and its chief executive, Rodney Adler, before HIH
bought FAI in 1999.

Cooper's claims included:

■ The value of shares allocated to FAI Finance as a result
of the demutualisation of Credit Reference Ltd, which became Data
Advantage. FAI was issued with 217,009 shares and Cooper claimed
Adler said he [Cooper] was entitled to them. Cooper valued that
stake at $1.2 million. Mr Howard offered $450,000, which was
rejected, and eventually agreed to pay $1 million.

■ An overpayment of $148,000 made by HIH following
confusion as to whether a payment was in US or Australian
dollars.

■ A $250,000 sponsorship cheque for Collingwood Football
Club after Cooper told Mr Howard a sponsor had dropped out and he
wanted HIH as replacement. When Mr Howard spoke to HIH's chief, Ray
Williams, Mr Williams said: "He is a strange fellow, isn't he? I
don't see any problem with it."

■ A payment of $275,000after Cooper had to vacate an
FAI-owned office building in North Sydney he had fitted out. Cooper
wanted more, but after haggling this was the amount paid. Mr Howard
said Cooper's rent on the building "had been unpaid".

■ Payment of $2.5 million in January 2001, when Cooper
said his Ness Security systems company was facing "a cash
flow-negative period".

■ Cooper also sought $1 million compensation for expenses
resulting from a cancelled option agreement.

Mr Howard said he flew to San Francisco in mid-February 2001 on
business. Waiting at his hotel was a fax from Cooper demanding he
settle a $1.2 million claim over the Data Advantage shares.

When Mr Howard said he would deal with it on his return, Cooper
said "he wanted it straight away". Mr Howard said he would do the
best he could.

Cooper has pleaded not guilty to six charges of bribery and
seven charges of falsifying documents.